Why Paychex Is a Better Buy Than ADP

Investors are applauding Paychex, following the payroll and human-resources firm's better-than-expected fiscal third quarter.

After the close Wednesday, Paychex (ticker: PAYX) reported earnings of $144.5 million, or 40 cents a share, up from 37 cents a share in the year-ago period. Revenue grew 4.2% to $593.3 million in the quarter ended Feb. 28. Analysts had predicted a per-share profit of 39 cents on revenue of $593 million. The...